Given the state's long history with unions – most notably the United Auto Workers (UAW) at the Big Three – many were surprised when Michigan enacted its right-to-work law in 2012, which generally makes it unlawful for companies and labor organizations to require workers to pay union dues as a condition of employment. That history, perhaps, made it a bit less surprising last year when the state legislature became the first in more than six decades to repeal a right-to-work law. 

That repeal and new law goes into effect Feb. 13, 2024. That means it will no longer be illegal in Michigan for collective bargaining agreements in the private sector to contain union security clauses mandating all bargaining unit employees pay dues as a condition of employment.

Many private sector employers in the state may have negotiated and agreed to language in their labor agreements that says union security clauses will become effective in the event Michigan's right-to-work law is repealed. Accordingly, any employers with unionized operations in Michigan should consider reviewing their union contracts and evaluate what legal obligations there are on this front moving forward.

And if no such language is in the current agreement, employers should be prepared for a full-court press in any upcoming successor agreement negotiations.

While there has been much hoopla surrounding right-to-work laws, they’re pretty simple in terms of what they say: an employee cannot be required to become a union member or forced to pay union dues as a condition of employment. That’s it. In other words, union security clauses in labor agreements that require employees to be dues-paying union members as a condition of employment are illegal in right-to-work states.

In states without such laws, in contrast, all employees typically are required to pay union fees if the collective bargaining agreement between the employer and the union contains a provision mandating dues payment as a condition of employment. That is, any employee declining to join a union and pay dues can be terminated.

Even with Michigan's repeal, more than half the states have such laws on the books.

Finally, it is important to note that public sector (e.g., government) employees in Michigan (and all other states) still cannot be forced to pay union dues as a result of a Supreme Court ruling on this issue six years ago. 

Bottom line: Private sector companies with Michigan operations should be cognizant of this significant labor law change going into effect this week.